Human Resources Software Technology Selection – 5 Step How to Guide
Posted on | January 11, 2009 | No Comments
The HRMS software technology selection advice offered in this article is based on 15 years of experience assisting HR professionals with the process of selecting an HR Information Systems (HRIS) or Human Resources Management System (HRMS) software application. Over those years, I have seen many companies do a great job of selecting a system and unfortunately, many who did not and ended up having to repeat the process just to find a system that meets their needs. This HRM Software technology selection guide was created to provide a game plan for finding a system that fits your needs, budget, and company growth.
- Determine your HR Management System needs
- Find a handful of human resources software vendors who match your needs
- Time for the Demos
- Research the short List
- Making the Decision and Gaining Approval
- Determine your HR software solution needs – Before you begin the process of setting up demos and evaluating systems, you need to have a good idea of exactly what you need a system to do for you. This is the most important step of the entire process. The more detailed you are with this step the more likely you are to find a system that matches your unique needs.
Ask yourself the following questions to start the process of determining needs:
· If you were going to create your own HR technology system, what capabilities would it have?
· Exactly what reports would you need?
· What data do you need to track?
· Involve other departments such as payroll, training, and risk management to determine “What are their needs for the system”?
· What capabilities would a system need to have to assist with meeting corporate HR goals?
· Determine the type of platform you are looking for. Will you host the software internally or have the software company host it for you?
· How much are you are able to spend on a system at one time or per year?
· Will you be changing your payroll system, as well, or will you need an interface between your new HRIS system and your existing payroll product? Are there any other systems that will need to be interfaced, such as time clocks, GL, or other HRMS systems?
Now that you have created a detailed needs list, create an Excel vendor score sheet for the demos. Down the left side add the list of needs and across the top you will add the HR technology vendor names. These systems are going to appear very similar and you may forget which product offered which feature. This process will make the decision step much easier.
- Find a handful of HR technology vendors who match your basic needs – This step is not as easy as it might appear but I will see if I can help you shorten this process. If you are looking for hosted or subscription HR software applications with payroll; Google it. Then, look at a number of vendor websites. With each individual product website, you want to find a feature list to see how many of your basic needs it appears to meet. You might also want to ask other HR professionals, in your industry, which systems they use and if they would recommend those systems.
There is an easier way. Google HRIS or HRMS software comparison websites and you will find a number of sites dedicated to making this process easier. Check out several, as these websites vary tremendously in capabilities and features. My website, CompareHRIS.com, offers a number of tools including an HRIS or HRMS selection tool to assist with this step.
At this point, you should have a list of seven or eight unique vendors. It might be a good idea to call each vendor to make sure that each meets your most important needs and budget range. With a single phone call you should be able to get a broad price range and if they offer hosted, purchase or both options.
- Time for the Demos – Now that you have a detailed list of needs, your spreadsheet, and a list of vendors it’s time to setup the demos. With each demo, it’s important to realize you are the prospective customer, thus, are in control of the demo. Make sure the person doing the demo shows you every capability you have outlined in your list of needs and on your spreadsheet. If you have a particular report you have to have, ensure the sales person shows you that exact report or shows how that report is created.
- Research the Short List – After the demos, you will likely have your decision narrowed down to two or three HRIS HRMS systems. At this point you want to research these companies. This will include checking references, determining how long the company has been in business, their financial standing and the number of installs they currently have.
- Making the Decision and Gaining Approval – Making your decision should be pretty easy at this point based on all the work you put in at the front end of the process. Between your needs, your spreadsheet results, your research, and the prices the best decision should be fairly obvious.
Gaining management approval, however, might be tricky. Cost justifying an HRIS system is not the easiest process. You will have to sell the value, the benefits of HRIS and show how the system will help meet organizational goals. Part of the reason I suggested involving other departments in the needs assessment step is that a system that benefits multiple departments may show greater value than a system that benefits a single department. If you need additional advice on cost justifying an HRIS system, you will find a number of very good articles on this topic on the web by searching on the terms.
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